National Republican., 1887-02-03

be set aside by law in good faith. IL is a
question whether or not the promoters OF
that law intended that the government
should go into the open market and pay a
premium of 2S per cent. for its bonds In
order to comply with that provision.
Mr.. Ingalls,. How does It happen (the
law being imperative .as TO the annual
amount TO be set aside for the sinking fund)
that that fund Is now three hundred mil
lions in excess Of the amount which should
be held for that purpose.
Mr.. Allison. That is q question OF arith-
metic which the senator can solve for him.
self. The law requires per cent. to be set
Mr.. Ingalls,. No more and no lessp
Mr.. Allison. IL does not say "no more
and no less" implicitly 1t must be no less.
Now, the government has purchased and
put In the sinking fund sum largely In
excess OF the amount required by that per
cent. provision, and has done so for many
years.
Mr.. Beck. The senator from Iowa can
answer that question by saying that Con-
gress passed an additional law authorizing
the Secretary of the Treasury to purchase
bonds payable with any surplus revenue he
had. That made the excess.
Mr.. Allison. That is q very good answer,
although the law did not require that ex-
cess to be put In the sinking fund.
Mr.. Plat. am glad to have listened to
this very soothing exposition of the pros
pective revenues and expenditures for the
next fiscal year. understand from 1t that
If Congress makes the appropriations that
are really needed according to the esti-
mates submitted by the departments), there
will not be surplus Of receipts over and
above expenditures likely to exceed fifty
millions at the very outside. Now, II we
are not to have for the next fiscal year q
surplus exceeding fifty millions, l want to
be reckoned as an opponent OF any scheme
that will lessen that surplus; and do not
want this Congress to adjourn until 1t has
provided, in some way, that q sum equal or
nearly equal to fifty millions shall be i'm.
medately available to commence system
Of coast defenses. j think that Congress
will be negligent OF its duty, will be justly
and severely criticised by the people, will
have forgotten the best interests Of the
country II It shall adjourn without having
made such a provision. And I, for one,
want to be counted as an opponent OF any
scheme that will reduce the revenues OF
this government to point where there will
not be plenty OF money to inaugurate and
carry on most vigorously a thorough system
OF coast defenses.
Mr.. Beck said that he had not heard dis
tinctly the statement made by the chairman
OF the committee on appropriations, aud
he did not therefore propose to contradict
anything which he had said without care
full examination. He would read the speech
In the Record to-day and would then see
whether it should be replied to. But he
thought the senator was mistaken as to the
estimates Of expenditures running up to
s396.000,000.
Further discussion upon this particular
line was INDUCED in by Messrs. Allison,
Beck, and Teller, In the course Of which
Mr.. Beck said he thought he would be able
to show that the surplus revenue this year
will be nearer ninety millions than fifteen
millions.
Mr.. Teller. Without regard to the sinking
fund.-
Mr.. Beck. There is no such thing as q
sinking fund, and there cannot be without
absolutely giving away our money to en-
hance the price Of bonds. Does the senator
from Colorado believe that IL the sinking
| fund were S25, ,000, 900 year, and we had a
surplus of $4,000, 900 in one year, and APP
piled that O,000,0 900 to the sinking fund
we would still be obliged to apply S25, 900,
600 the next yearp The whole idea OF sink
ing fund was that we should put into 1t at
least per cent. per annum so as to let the
bondholders know that the principal would
be liquidated. But l do not want to enter
into that question just now. / want this
bill to pass, and, therefore. want to avoid
discussion.
Mr.. Teller said that he had been educated
to understand that plain words Of a statut,
were not to be construed away. He had
also been educated to understand that tn
executive department of the government
had nothing to do with the propriety o.
improperly Of passing bill. 1t was IL
duty to execute the law as 1t stood on tn,
statute book. In his judgment the execu-
tive department of the government wal
bound to recognize and execute the sinking
fund statute and was bound to buy III
bonds for the purpose as 1t could. He did
not say that It was good policy. But Il
was the law, and it was the duty of th,
executive department of the government
to enforce existing law. 1t was no answe
for the senator from Kentucky to ask hin
whether he thought 1t wise to buy bond
at great premium.
There was in the treasury Of the United
States large amount OF money that wa
not needed there, and IL the executive de
pGrtment had no authority to pay 1t out
then the responsibility should be loud a
the door of the legislative department.
was for the legislative department to sa.
on what plan and principle the public deb
that. There were plenty Of opportunities
wise opportunities, to pay out OF the treas
ury the excess Of revenue that was nov
there, and all that would come In mex
year, even II there should be surplus o
ninety-nine millions. A few days ago tn
admiral of the navy had sent to distin
guished member Of the House letter Il
which the astounding statement was mad
that the United States government had go
only one ship that could in three month
do service, and that that ship had only on
single gun. The Dolphin was the onl
vessel that the government had got whic
could be put to sea within three months
aIs,nu and yet yet. some. some persons s,,,,. wef
the treasury. The country was withou
seaports Of the country could be raided b
any ffth-rate naval poverty Chill, China
Japan, or Spain. Not only that, but ever
city on the great lakes was equally exposed
Under the treaty with Great Britain tn
United States had agreed to keep upo
those lakes but one war vessel, and b
understood that that vessel to-day had onl
a cast.iron gun, which was used to announc
the rising and the setting of the sun, au
was scarcely good for that. England coul
put on the great lakes fleet which coul
destroy every town on those lakes l
twenty-four hours. By the Wellsnd cana
England had access to the lakes, and coul
send there ironclads and war vessels an
lombard Chicago, Detroit, Cleveland, an
all the great cities OF the lakei
Was It WISDOM. therefore,. or wa
II worth while for the Senate to spend II
time In determining what should be the n
duction OF the revenue when there was
necessity for such vast expenditure
Spain was not regarded as first class nj
tion, and yet her war vessels were to b
found all over the world. Spain had re
Gently mortgaged her forests and publ
lands for $45, 900, 900 to put into war ship!
This country had not only no ships an
l.,.N Ia1
, press had announced only a few days az
that Great Baitain had sent across to th
western coast more efficient guns than I'll
United States could muster all told.
; In the letter to which he had already r.
ferred from the admiral Of the navy, an
which he commended to the perusal {
senators, II was said that it was not twent